Average offer prices for ex-China wire rod have remained stable over the past week, but some ASEAN mills have decided to cut prices to accelerate sales as the general market mood is still negative.
Offers for ex-China wire rod from second-tier steel mills have been heard at $450-470/mt FOB, moving sideways on average compared to June 5, while reference deal prices have been heard at $445-460/mt FOB.
During the given week, wire rod prices in the Chinese domestic market have fluctuated within a limited range as inventories have decreased amid declining production. The plum rainy season in the lower and middle reaches of the Yangtze River has weakened the demand for wire rod. At the same time, entrance examinations for colleges and for senior high schools have been taking place successively, exerting a negative impact on activities at construction sites. It is thought that wire rod prices in the Chinese domestic market will continue to fluctuate within a limited range with a negative bias in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $495/mt FOB, for September shipment, down by $10/mt on average compared to June 5. Since the mill has had no sales for some time, it has had to cut prices. Another Indonesian mill has managed to sell around 10,000 mt of wire rod to Europe, but the price has been above $500/mt FOB due to the size (5.5 mm), while it is for July shipment.
Offer prices of ex-Malaysia wire rod have been heard at $470-480/mt FOB, edging down by $2.5/mt on average compared to June 5, as the main focus is Asia.
In Southeast Asia, the mainstream tradable prices of SAE1008 6.5 mm wire rod have been heard at $460-470/mt CFR, down by $5-10/mt over the past week, considering weak demand and the negative mood in the longs and semis segments in Asia. Buyers in the Philippines have been bidding at $460/mt CFR, but most offers have been $10/mt higher.
As of June 12, rebar futures at Shanghai Futures Exchange are standing at RMB 2,968/mt ($412/mt), increasing by RMB 9/mt ($1.3/mt) or 0.3 percent since June 5, while down 0.7 percent compared to the previous trading day, June 11.
$1 = RMB 7.1803